researuh and development in industrial corporations: can

WRRC Bulletin 62

Researuh and Development in Industrial Corporations

Can Advanued Souieties Learn to Contain Pollution~

By

Roy E Rickson Assistant Professor

Department of Sociology University of Minnesota

r (lr(~i t~gtt3 Water Res)ufCy (

ROC~i Gi 26ir Ull

St P Mwlt-

The work upon whieh this JIJtJItU in part by funds provlde(j United States Department of the Interior as

authorized under the yater Hesourccs Hesearch Act of 1964 Public Law 88-379 and by the

Agricultural Experiment Station Institute of University of Minnesota St Panl Minnesota

August 1973 Minneapolis Minnesota

WATER RESOURCES UESEARCH CENTER UNIVERSITY OF MINNESOTA

GRADUATE SCHOOL

CONTENTS

Foreword bull bull bull bull Acknowledgments Introduction bull bull The Social Organization of Production

Problem Orientation bull bull bull bull bull bull bull Science and Industrial Technology bull Science at the Corporate Level Innovativeness The Control Hypothesis

The Expert Role Models of Control A Final Note

References bull bull bull bull bull bull bull

Page

if iii

1 3 3 5 6 8 9

12 12 17 21

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FOREWORD

This Bulletin is published in furtherance of the purposes of the Water Resources Research Act of 1964 The purpose of the Act is to stimulate sponsor provide for and supplement present programs for the conduct of research investigations experiments and the training of scientists in the field of water and resources which affect water The Act is promoting a more adequate national program of water resources research by furnishing financial assistance to non-Federal research

The act provides for establishment of Water Resources Research Centers at Universities throughout the Nation On September 1 1964 a Water Reshysources Research Center was established in the Graduate School as an intershydisciplinary component of the University of Minnesota The Center has the responsibility for unifying and stimulating University water resources reshysearch through the administration of funds covered in the Act and made avail shyable by other sources coordinating University research with water resources programs of local State and Federal agencies and private organizations throughout the State and assisting in training additional scientists for work in the field of water resources through research

This Bulletin is number 62 in a series of publications designed to present information bearing on water resources research in Minnesota and the results of some of the research sponsored by the Center The Bulletin is concerned with knowledge as a source of power to large-scale industries and the meaning of this for pollution problem solution at the societal level The results of this research should improve the understanding of the social dimensions of the pollution problem and provide valuable inforshymation concerning the process by which change occurs or is resisted

This Bulletin is related to the following research project

OWRR Project No B-047-Minn

Matching Grant Agreement No 14-31-0001-3294

Project Title Social and Economic Factors in the Adoption by Industry of Water Pollution Control Measures

Principal Investigator RE Rickson Department of Sociology University of Minnesota

Project Began July 1 1970 Scheduled Completion June 30 1973

FCST Research Category 06-E

Publication Abstract

The development and distribution of knowledge has long been of interest to policy-makers and social scientists Because of the power of industrial corporations and the influence they have over the general

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research and development process societies have the knowledge to deal with problems that coincide with corporate goals but have difficulty handling problems where solutions are in the short run contradictory to the uninterrupted pursuit of economic goals A good example is societal ability to deal with waste or pollution Two processes are important (1) the process by which resources are allocated to research at the corporate and societal level and (2) the management of the expert role by organizations

Publication Descriptors Policy Decisions Pollution Control Corporshyate Power Minnesota Social Organization Environmental Concerns Change

Publication Identifiers Expert Role Models of Control Knowledge Production

ACKNOWLEDGMENT S

I am indebted to Professors GA Donohue Bert Ellenbogen Dario Menanteau Clarice Olien CE Ramsey and PJ Tichenor for their help in various phases of this Bulletin Special gratitude is extended to Professor William C Walton Director Water Resources Research Center University of Minnesota The material in this Bulletin has been subshymitted for publication to The Administrative Science Quarterly

Malott Hall Cornell University Ithaca New York 14850

iii

RESEARCH AND DEVELOPMENf IN INDUSTRIAL CORPORATIONS CAN ADVAcltCED SOCIETIES LEARN TO CONTROL POLLUTION

INTRODUCTTON

Aside from their economic power the great industrial corporations have a significant role in the creation and development of technical knowledge They are capable of producing new knowledge through their own research as well as adopting and further developing knowledge that is created by professionals outside their boundaries An important inshydicator of the level of techno1ogica1 sophistication of an organiziltion or a society is whether it has moved from the relatively sLmple strite of adopting new technology to the point where it creates new know]edlW or technology Indeed the rationa1 organization of knowledge for proshyduction and profit maximization are the principle goals of the modern industrial systems As power has passed from owners to professiona1 managers a basic task of the modern manager is administration of the knowledge producing process As a result knowledge that is created in an industrial society is almost exclusively oriented to the needf of an expanding economy and a technology oriented to production ClUe

profit Because of the dominance of large industry and its contre over sci entific and engineering research the knowledge to deal wi til problems like pollution that are outside and even contradiftory to [11 current thrust and organization of the industrial system arc sonly negmiddotmiddot 1ected Herein lies the dilemma for advanced industrial systfms and the focus of this paper

Modern industrial corporations employ vast numbers or 0cicntisrs engineers and technicians whose work is valued because it contributes to the goals of the industrial system-economic growth production proshyfit In a production oriented society we also find that the work of university scholars in the physical biological agricult ural uno ineering sciences have given priority to problems of expanding indusshytrial as well as agricultural production and economic growth Modrn industrial societies have thereby a social structure where knowlecge is valued to the degree that it augments either production or profit- shymaking

Emphasis for waste control research does not originate from the internal pressures of the economic system or corporation when such cern lies outside thetr deve10pmental model Generally industrial ieties have defined development as economic growth increased producti or profit-making Other concerns related to environmental quality for example have not been seen as important elements of that model Waste control has become a problem to industrial corporations in the United States for example on1y because powerful groups using a model of devshyelopment that includes environmental qualtty have been able to promote legislation and organize so that industrial corporations will inclUde the maintenance of environmental quality as a goal of their operation as

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1well as production and profit-making As rational systems oriented a few large corporations means that their role is subject to more censhyto economic goals (see Thompson 1967) industrial organizations alloshy tralized control than if they were scattered among numerous smaller cate resources in line with those goals organizations Professionals have become highly dependent on a few profit-making It should be added that we are speaking organizations that have the resources and facilities that scientific systems and not capitalist as opposed to socialist systems of production work requires

the dynamics of the pricing system differs among the two the

eg growth in nroduction and

goals of their industrial systems and the organization of their respecshytive economies become strikingly similar Industrial pollution parshyticularly water pollution is a problem in the Soviet Union for subshystantially the same reasons as in the United States Profit-making would not be a goal of industries in socialist economies yet an economic surshyplus is highly valued Growth in production is certainly a goal of large-scale industries in both socialist and capitalist economies

Research on waste disposal in communities as well as industries has not been actively supported by industries or government funding agencies until recently Even now the levels of support for research on problems of disposing of atomic waste for example is far below funding for research devoted to conversion of atomic energy for commershycial use Furthermore research on production problems is usually not directly applicable for handling industrial effluents Research and development programs that do not contribute to the economic expansion of companies through increased production are required Companies are therefore asked to allocate resources to research and development that are of social and political importance but detract from economic goals

Both research and development is referred to The latter defined by the National Science Foundation as the process directed toward the production of useful materials devices systems or methods including design and development of prototypes and processes It represents the application of the findings of research to meet practical problems Some scholars contend that we have the knowledge from basic and applied research to reduce the impact of industrial pollution that accounts for about 65 percent of all air and water pollution Even if the research knowledge is available the knowledge needed to translate abstract concepts into workable solutions to pollution problems has not been undertaken with the same dedication as developmental efforts to increase production This of course results from the rational orientation of industrial orshyganizations to economic goals of production expansion and profit

Because training research efforts funding and thereby scienshytific interest has been stronly oriented to production goals the basis of current pollution problems is to be found in the social organization of scientific and industrial productivity Knowledge in other words has been highly controlled to facilitate production and profit maximizashytion Since the modern corporation is the basic unit of production in the modern economy we must understand more fully the relationship of science and industrial productivity at the corporate level Most scienshytists and engineers are employed by large corporations In 1970 the top five RampD performing industries accounted for 81 percent of the all-indusshytry total (National Science Foundat ion Bulletin 1172-309 Research and Development in Industry page 6) Concentration of professionals into

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Knowledge control is a basic source of power for all large-scale organizations from public to private It is part of a natural process by which organizations seek to control and predict their environment for purposes of goal accomplishment and self-preservation or pattern maintenance Organizations as diverse as the Office of Economic Opporshytunities the Department of Defense Universities and large corporashytions are all alike in this respect A simple reason is that knowledge influences policy and defines the alternatives for action Those who control the creation and application of knowledge influence substantially the alternatives seen as available for action by all and therefore deshyrive power An understanding of knowledge control is fundamental to an understanding of social organization

THE SOCIAL ORGANIZATION OF PRODUCTION

Harnessing natural energy for purposes of production has been one of the necessary conditions of technological and industrial growth Two social units that have played important roles in this process include (1) the scientific community and (2) the giant industrial corporation These two in partnership with the polity and educational institution have controlled and consequently derived power from the growing sophisshytication of production technology and mass consumption Power is deshyfined as the ability of a person group or any social unit to control events so that the outcomes are beneficial to them (Coleman 1973 38) Referring to largescale industrial organizations we would say that they exercise power for purposes of goal accomplishment The marriage of science and industrial technology has successfully functioned to inshycrease both production and profits

Pollution abatement however is a problem where solutions run counter to the continual and uninterrupted pursuit of economic growth and profit At least in the short term a reduction of industrial waste or purificashytion of industrial wastes requires that organizations allocate resources to functions that will not increase production or profits Development of the necessary technology to reduce industrial pollution to acceptable levshyels has and will require a great deal of money as well as the commitshyment by industry of professional and research personnel to these problems Industries must commit resources to activities that are not directly conshyducive to economic expansion and profit maximization if the harmful affects of industrial waste is to be reduced A basic question is whether the traditional model of economic growth can continue to be applied in advanced as well as the developing countires without their suffering high levels of environmental destruction The traditional model of

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economic development with some variation across political systems inshycludes growth in production full employment and profit maximization Science has been applied to problems of production technology so that these cultural goals can be met A basic question is whether an indusshytrial or industrializing society can generate and apply knowledge to deal with problems that are outside the framework of the traditional economic model yet critical to public health and environmental quality One can argue as well that the traditional model will in the long run break down as environmental problems become so acute that high levels of social unrest curtail further economic expansion

Pollution has become socially unacceptable and its occurrence is a focal issue in the relationship of public and private interests parshyticularly industrial organizations and their communities Industrial technologys rapid growth has placed serious strains on the quality of natural resources Water for example is a basic ingredient of indusshytrial production and when not used as a specific input it is commonly employed as a means for the disposal of liquid wastes Industry is the largest withdrawer of water in the United States and its total water withdrawals are expected to increase Industry in addition is a major producer of liquid wastes and much of it is deposited into public watershyways Economic growth in the past at least has resulted in more water use both because of the increased direct consumption of water for product mix and for the disposal of liquid and solid wastes If we were to deshyvise a measure of industrial water use that included public water used for industrial waste disposal the picture of the volume of water by industry would be greatly magnified At the very time the public needs an ever increasing supply of water there has been experienced decline in both quality and in some areas quantity Also current debates about what a quality environment is and the general rules for use of the physical environment directly involves the research and general expertise of the scientific and engineering communities having far reaching consequences for their societal role

In this we will focus on two dimensions of the more general condition relationship between science and industrial techshynology at the corporate level and (2) the creation and use of knowledge in the industrial corporation in relationship to the social role of the industrial scientist and engineer Our contention is that because of the power of the modern industrial corporation to control the nature and distribution of scientific and technical knowledge societies cannot adequately learn to deal with problems like pollution that are critical yet do not easily fit with the current goals of industrial corporations

All knowledge including scientific is part of a control system (Donohue Tichenor Olien 1973) Besides the values and cultural goals of the industrial system professional values influence the content of scholarly research and publication Industrial societies highly value the work of indtlstrial scientists and engineers For corporate execushytives the management of knowledge has become one of their most imporshytant functions The marriage of science and technologv to further inshydustrial output has meant that the management of knowledge and of course

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those that produce knowledge is a basic corporate task Knowledge if it is to benefit profit maximization must be directed to problems of production Industrial corporations as rational with economic goals are chiefly oriented to a specific set of viz those related to production llowever because of their scope decisions made for reasons of economics and by economic criteria have far reaching social and political consequences A high level of social disequilishybrium is the result Resources are continually allocated to problems where knowledge is greatest ie production technology to further stimulate output with less attention to waste control

Discontinuous change is the result of societal domination by one set of cultural goals to the exclusion of others Rather than the gradshyual improvement of waste control procedures over the years developshyment and enforcement of laws and steady growth in scientific and engineershying research to deal with industrial wastes crash programs and crisis related poliCies are now contemplated As a result social conflicts and strains become more characteristic of pollution abatement than problem resshyolution As large scale industrial organizations have become increasshyingly important for the creation and distribution of knowledge in indusshytrial systems the ability of a society to deal with situations that seemingly critical are outside the context of the industrial system become more and more problematic We need to understand the factors inhibiting the ability of industrial societies both independently and collectively from solving problems of industrial pollution when they have been so ovetwhelmingly successful in their ability to produce

Although the organized application of science to advance technology and industrial production is a relatively new event it has emerged as one of the most significant inputs (Mansfield 1968 44) The importance of scientific knowledge and edueation for economic growth in the indusshytrial system is founded in the research by economists showing that exshypansion and productivity especially the latter is due more to the applishyeat ion of abstract knowledge to production by an increaSingly well-trained work force Denison (1952 214-231) estimated that 42 percent of the rise in output per worker between 1929 and 1957 was the result of imshyproved work force education 36 percent to the advance of scientific and teChnological knowledge and only 9 percent to increased capital intenshysity One conclusion that may be drawn is that capital accumulation has been of less importance to industrial expansion than has the creation and development of knowledge into sophisticated machine technology and advanced systems of management and planning The impact of the educated and specialized scientist and engineer has been of importance to industrial growth according to such data The same is generally true of agrieuIture (Solow 1957 312-320)

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The dependence of product ion technology on science has meant that the status and power of the scientific community has substantially risen Gains in social status by scientists is evident by judgments of persons in NORC surveys asked to rate occupations

The social ranking of scientists has changed from a low of 8 in 1947 to a high of 35 in 1963 Tn 1963 the only occupations ranked above scientist was US Supreme Court Justice and physician The prestige ratings in 1963 reflect according to the authors (Hodge et al 1966 322-334) fundamental changes in the occupational structure and labor force since 1947 Scientists and other professionals enjoyed a great deal of growth in prestige and power during this period Also the public has turned to professionals for solutions to their problems However the reverse is also true The status and power of modern science is related to the continued expansion of production technology If the creation of new knowledge is one of the principle goals of the scientific community modern industrial corporations provide one of the most important sources in which scientists can work to accomplish this end Indeed many innovations are first developed and introduced by large-scale industries that can affort the high cost of modern technical resources and can exploit the results of new knowledge and the opportunshyities that are provided by advancing technology (Holloman 1963)

It is nevertheless in the management of knowledge to meet organshyizational goals where power lies Tndustrial managers who may also be scientists or engineers have the task of directing research and coordinshyating the work of technical specialists to meet problems of production and competition It is true that professional scientists and engineers enshyjoy considerable autonomy hence power but only so long as their work contributes directly to profit maximization and production goals Basic research and knowledge maximization a central goal of the scientific community is not highly valued by industrial corporations with profit maximization goals In 1970 $598 million was spent by US industries in support of basic research representing IS percent of all basic reshysearch performed in the United States Industries allocated $33 bilshylion for applied research and $14 billion for developmental perforllklnce Industries performed 56 and 85 percent respectively of the national applied research and tests for developmental performance Furthermore the federal government allocated less than 2 percent of its RampD in industry to basic research This amounted to 6 percent of all Federal basic research in the economy (National Science Foundation Bulshyletin 72-209 and Development of Industry 1970 page 15) The consequence of the joining of science and industrial technology in a formal control system dominated by economic goals has been that the professional works in service of production and profit not knowledge maximization

Science as a social institution is highly esteemed as a tool for understanding or controlling nature (Williams 1970 487) Mastery of the physicl and social environment through understanding has been the

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consistent and recurring theme of both the industrial and scientific communities The critical difference between the two systems is the relative value placed on knowledge Knowledge for its own sake or the maximization of knowledge about nature is the principle goal of science Knowledge in pursuit of economic goals is the function of science from the point of view of the industrial organization Science defined in this manner is consistent with the means orientation of American culture and has been a valuable tool in the development of vast amounts of natshyural energy so necessary to advanced industrial production

Although scientific knowl edge has been a pr imary source of social change in all of the other institutions Williams (1970 487) describes it as primarily representing a point of intersection of other institushytions above all of education polity and the economy Knowledge conshytrol a constant in all societies is directed by the values and norms of the scientific community if we wish to stress its independence And from the values norms and power of the other institutions such as the economic or political if we wish to stress its dependence on other socshyial institutions Institutional autonomy can be measured by whether an institution is capable of implementing and sanctioning its basic cultural goals Basic criteria of the scientific model include objective research design and interpretation of findings Secondly achievement is based upon contribution to knowledge with general goal of knowledge maximizashytion rather than a specific goal of profit maximization for example When the criteria for status in a given social institution science is heavily influenced by achievement criteria of another perhaps more powerful institution then one has been dominated by the other

The usefulness of modern science to industrial production and proshyfit maximization has contributed to a high level of social integration of the scientific with the economic institution Most scientists work in industrial corporations and direct their research to facilitate corshyporate goals Personal prestige and influence is highly related especshyially in engineering (Layton 1969 51-73) to the position one holds in a corporate structure as well as and in some cases secondarily to the experts research and scholarly accomplishments There has also been a rather high level of integration with to power Scienshytists and scientific knowledge are highly because of their contribution to cultural goals such as production and profit Corporashytions acknowledge their dependence on technical experts through high salaries the allocation of resources to applied research and developshymental programs and by recruiting them to policy-making positions At the same time the level of cultural integration between science and the industrial system is very low Profit maximization and growth in producshytion being the principle goals of industrial corporations conflicts dirshyectly with the basic goal of science-maximization of knowledge

If we may speak of the integration of the scientific and economic institution at the system level it is important to focus on the major source of that integration This is of course the large industrial organization whose function is the coordination of specialized knowledge

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-----shy

to meet economic goals There are two important properties of industrial corporations if not all organizations that are critical to the current role of science One innovativeness by industrial organizations is a continual requirement as short run knowledge soon loses its significance as environments change and search for new understanding and new means to meet production goals is necessary The second is that all organizashytions must exercise some degree of control over their environment

Innovativeness

As the task of organizations becomes increasingly complex (developshyment of nuclear power nylon) they must be able to create knowledge and not just borrow it Innovativeness is therefore a prerequisite of organizations with complex tasks Scientific and engineering subsystems have the responsibility for creating new technologies or further developshying old ones As SOCial structures capable of innovativeness or learning (Dunn 1971) they must be able to create knowledge gather information about their environment store the information and apply it to present circumstances Organizations are adaptable to change according to this perspective when their structures are organized so that feedback from the environment readily enters the structure and influences decishysion-making Burns and Stalker (1961) found that adaptive firms in the electronic industry had a social structure that readily reacted to market flucuations Technological or market information flowed from the research and development departments directly to those parts of the production deshypartment where the information was needed to revise routing operations Other students of organization substantiate the conclusions by Burns and Stalker with their findings that the rate of program change is greatest in organizations high in complexity low in centralization and formalizashytion (Lawrence and Lorsch 1967 Hage and Aiken 1970) In different studies Price (1964) and Blau (1966) found that the use of new knowledge was most likely in organizations where the responsibilities of scientists and administrative decision makers were highly integrated

There is the possibility according to one model of organizations that as the scientific and the adminstrative role becomes more highly integrated a wider array of views and alternatives become part of the poliCy making process Exchange of information among scientists and administrators will increase the facility of the organization to respond to problems not directly related to productive capacity eg bullbull water and air pollution There is also the pOGsibility that as the role responsishybilities of scientists and administrators becomes coordinated production goals assume increasing influence over the direction of the research enterprise To the extent that shared role responsibilities mean that scientists and other professionals are more strongly tied to economic goals they become participants in the rational pursuit of organizational goals in this case profit and expansion Research and knowledge is therefore subject to economic criteria even with the involvement of and mOst likely cooperation of professionals The organizations

for creating and implementing new knowledge for economic goals is enhanced but its ability to respond effectively to problems of a

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counter-productive nature is correspondingly reduced Extensive contact and communication between professionals and executives or managers can result in the organization having greater program efficiency and higher rates of change but it is the direction and content of changes and not just rates of change that require attention

Traditionally industrial organizations have allocated resources to programs that have the potential of expanding production and profit FirIns therefore often find it more convenient to fight groups that call for changes in waste control rather than revise its internal proshygram of resource allocation Tn such a circumstance organizations are strongly tempted to use knowledge as a means of conflict through the suppression of certain research findings and the manipulation of others or by directly controlling the research design

Since scientific and engineering knowledge has been a central reshysource in the development and extension of production technology and a source of status and power for who command such knowledge the role of the scientist and engineer critical not only with respect to technical expertise but as the arbiters of power and conflict Their tie to the needs of production technology means that industrial scientists and engineers are becoming more and more to be identified as members of a conflict group rather than as independent observers responsible for obshyjective analysis Also resource allocation in large-scale industry with respect to pollution problems has been more responsive to external power groups than to the free flow of ideas between administrators and professionshyal staff

Complex organizations are adaptive units Innovation occurs as thei r env1ronment changes and the organization llnlSt react or adjust Another way to approach organizations is to study them as bodies capable of exercising power to control environmental change The organizations objective is to control external change so that internal adjustment 18 kept at a mlnlmum Through management of research and scientific knowshyledge in large measure determine viable policy alternatives One of the means for exercising power is knowledge control as existing knowledge essentially influences the nature and extent of reaction of groups critical of certain corporate practices untreated waste disposal If the large corporation with its goals of production expension and proshyfit maximization is controlling research content then they have considshyerable power in their ability to influence the reaction of outside groups critical of certain corporate functions untreated waste to cite an exshyample Organizations use knowledge to enable them to adapt to external change and to control policy formation Knowledge can be seen thereshyfore as a means for adaptation to change and as a basis for control of external group response and policy-making

The Control HYEothesis

Industrial organizations as do all human systems attempt to control their environment In advanced societies control over the social environshyment has largely replaced any direct relationship with the physical enshyvironment Changes in the physical environment have affect only in so far

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that powerful groups recognize those changes as problematic Largeshyscale organizations exercise control over consumer markets and are powerful instruments of change and resistance to change at all levels of government Protection of the core technology is an important factor motivating organizations to seek environmental control Rational organizashytions attempt to relate to the social environment so that frequent or extensive changes will not be required Thompson (1967 22) proposes that industrial organization seek power so that a compatible relationship between input activities output activities and technological activities will prevail The importance of this balance is given as follows

To the extent that environmental fluctuations are unanticipated they interfere with the orderly operation of the core technology and thereby reduce its performance ~len such influences are anticipated md considered for a particular period of time the tehcnical core can operate as it enjoyed a closed system (1967 22)

Rational organizations therefore try to buffer environmental influences from the core technology

As rational structures industrial organizations relate to the physhysical environment as a means to an end--as inputs to production Techshynological innovation Is valued to the degree that it contributes to the economic growth or the stability of the industrial system and therefore the mature corporation innovates in the direction that seemingly conshytributes to their growth and power while other concerns are given less importance With reference to water use Bower (1965) contends that industries have given little consideration to 1) substitution possishybilities among the components of industrial water utilization systems 2) the relationship of water to other factor inputs to the production process and 3) the impact of technological changes on industrial water utilization Professional associations closely related to given indusshytries have also censored research and publication of topics that were considered detrimental to the industry in which most were employed (Layton 1969 60) Also according to Mansfield (1968 63) Scientific reshysearch in industrial corporations has to satisfy three basic questions (1) the probability of commercial success of the proj ect (if technically successful) (2) the extra profit to the firm if the project were commershycially successful and (3) the investment required to put the research results into practice In the process of satisfying such questions scientists and technical experts as individuals and as a community are increasingly tied to production and profit goals These are ample conshytemporary examples of this process

According to some (Cordtz 83 106-110) the free and easy days for research and development in industry is over Basic research is being de-emphasized and result conscious corporate managers are bringing the laboratory down to earth The essential thing about research is that its objectives should be clearly defined in terms of corporate strategy In general the research role has assumed somewhat less importance than previously According to one reporter In the 50s if you were to ask

companies where they looked for innovation 90 would say research Toshyday they would say marketing One of the largest industrial corporations RCA has recently changed its orientation from research to marketing Rather than on scientific and engineering breakthroughs the

on analyzing the needs of the market drawing on largely existing technology to produce what is needed and then place most of their effort on selling Demaree syas (86 123) The change (in RCA) has meant a massive internal shift in power away from the sci entists and engineers and toward the marketeers and production planners

Generally quality requirement of the production process direct industrial research and the funding programs of federal agencies are also more oriented to production needs than to the problems of waste disposal Research when it concerns water for example has traditionally emphasshyized the relationship of water quality to production requirements rather than water polluting consequences of production Governing boards of engineering societies have been known to veto the publication of papers or the presentation of programs at association meetings because of their sensitivity Using such means companies have been able to veto polshyicies or publicat ions they oppose Considerat ions to study air pollut ion or water pollution were customarily opposed by engineering societies because of the industries they were most intimately associated with It was not until pollution became a political issue and companies were forced by powerful pressure groups to consider industrial pollution as a company and not just a public responsibility did papers on begin appearing at the meetings of engineering societies 1969) Extensive quality control over industrial effluents rupt seriously the core technology When the production technology is relatively standardized as the result of considerable research and inshyvestment there will be resistance to change for the sake of purifying wastes an interest that was not present in the early stages of standarshydizing procedures The point to make is that knowledge developed is not separate from the needs of the core technology and control over knowlfdge essentially limits the alternatives for technological development Altershynatives are designed to meet production requirements Although highly innovative structures have a knowledge base that allows them to make a sophisticated search for ideas and alternatives to reduce their pollution it is also the case that the requirements of the core technology and production goals generally given their overwhelming importance influence the industrial search for information and the research of industrial scienshytists and engineers

j When knowledge is an important resource in an organization the

experts role is a strategic one and subject to considerable pressure so that its dimensions will coincide with company policy Companies therefore restrict research to production oriented problems Also professionals are encouraged to do research that will lead to profit-making patents Currently scientists and engineers are becoming more and more visible as expert witnesss in legal actions against industries allegedly polluting air and water A common occurence is a group enlisting scienshytists and engineers to contradict the expert testimony of industrial

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scientist and engineers In such a situation the expert is under considshyerable pressure to fashion his testimony to meet either a company or anshyother groups goals At issue is the autonomy of the experts role If technical knowledge is a means of conflict as well as goal accomplishment management of the expert s role (by these groups) becomes all the more important How autonomous the role is determines the nature of inquiry and the knowledge that is produced and communicated

THE EXPERT ROLE

The marriage of science and technology has meant that the technical expert the professional has been cast into new roles More and more decision-making is left to professionals in the areas of health education and community development The role itself however is subject to considshyerable pressure precisely hecause of its importance The new status of the professional means that groups of all kinds seek to legitimate their posishytion by a professionals word or analysis This can include consulting with professional scientists and engineers to the selective interpretation by the group of the scientists analysis There is then the di1enuna that as scientists and engineers have heen accorded high status in the decisionshymaking process it is also true that because of the experts prestige and value placed on scientific knowledge groups in~luding industrial corporations are anxious to control research and analysis to fortify their individual positions

While scientists are enjoving increased power in the policy process their dual basis of power has meant that the content of their role is subject to constraints other than Atrictlv scientific ones The ideal role of the scientist as pictured by the professional conununity is not always compatible with the goals of profit seeking organizations or the overall responsibilities of public agencies Kornhauser (1962) in a classic discussion of this dilemma suggests that most conflicts between the technical specialists and employing organizations private or public derive from the bureaucratic dilemma of autonomy vs integration Because of their socialization into the scientific community professional scienshytists and engineers highly value the freedom to define problems and make public both problem definitions and research findings that might contrishybute to their solution At the same time decision-makers in public and private structures are faced with an array of problems economic and polshyitical that motivate them to assume some control over problem definition and to perhaps conceal some findings to maintain their competitive posshyition as in the case of industry or to keep political power as with public agencies The relationship of scientists to the needs of the core techshynology is another factor Structures that are dependent on knowledge elevate scientists to more powerful positions than do less complex ones However the scientist also is dependent on the maintenance of the existing technology and may hesitate to suggest changes that will seriously disturb the internal logic of the core technology Consequently scientific search does not operate independently of the production and policy-making process and scientists do not always accept change gracefullv nor suggest it

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Several students of bureaucracy have studied the relationship of the scientist and decision-maker There are broadly speaking two theoretical models One assumes that professionals have gained considerable power due to the dependence of a technological upon their expertise The economists Galbraith (1967) Mansfield and sociologists Weber (1946) Grozier (1964) also develop this perspective Nevertheless there is a basis for conflict and alienation as bureaucratic and professional norms are often conflicting (Miller 1967) (Hall 1967) (Aiken and llage 1966) This concern is all the more important as the typical scientist today is a highly specialized worker operating in a bureaucratic setting From the organizations perspective effectiveness is created by integrating scienshytific perspectives and research with its economic goals The central goal of the professional conununity is new knowledge along with autonomy in the search for knowledge The potential for alienation and conflict between the man of action and the man of science is consequently great Miller (1967) presented evidence that structural variation was related to whether scientists felt alienated Alienation was less likely to occur among scientists when they worked in organizational units that stressed basic research rather than application and development He also found that the more freedom of research choice there was the less alienation experienced among scientsits and engineers Aiken and lage (1966) more explicitlv related structural properties of organizations to the alienation of profshyessionals They found that highly centralized and highly formalized organshyizational structures are characterized by greater work alienation and a high degree of personal isolation for professional staff

Applied research does not necessarily result in alienation by profshyessionals if they are allowed to part icipate in formal deci s ion-making Hage and Aiken (1965) found that professional staff memhers in sixteen welfare agencies were likely to be satisfied with their work as their involvement in administrative decision-making increased Scientists can also be expected to modify their professional views to a firms profit oriented goals when their administrative involvement is high The critical factor for the scientists role in industry may not be whether they are responsible for applied or basic research but the degree to which they are involved in decisions influencing company policies It is not unlikel y that professional norms develop that adjust to private industries emphasis on applied research especially since most scientists work in industry and most of the research is supposed to be directly applicable to profit goals (Mansfield 1968)

The adjustment of individual scientists to the industrial role is also facilitated by the professionalization that goes on after graduate work Students of professional sociali zation have noted that although considerable role learning takes place in graduate and professional educashytion learning the professional role is not complete if ever until the individual actually performs the professional role Values emphasizing basic research and knowledge maximization can be modified as the new profshyessional finds himself dependent on a firm for practicing his profession The search for knowledge is therefore influenced by the practical needs of the production process even though scientists participate in the formation of company policies and program changes

13

Alternatives for research outside of large organizations are relativshyely few for most scientists and engineers With the exception of a distinshy

few most cannot move from company to company or to a university and back Professionals wanting to do research find their alternatives limited to production and profit related problems Rather than face an uncertain future outside the corporate structure most continue as indusshytrial employees Although research findings suggest that manv scientists and engineers are likely to experience alienation from work there is no data suggesting high rates of turnover among such professionals Furthershymore opportunities for creativity and collaboration with colleagues can be and is found in industrual research Production and profit goals do not stifle the creativity of the industrial professionals They do however heavily influence the direction that creativity is to take The crucial variable is professional involvement with company policy Tf influence policy according to available research professionals are not alienated from their work Millers (1967) finding is most important here It is still true that production goals decidedly detennines policy and compshyany goals provide the framework for proj ect choice among professionals Alienation from work by professionals seems more related to policy involveshyment rather than any

Another theoretical framework is that the scientist is essentially a captive of the bureaucratic structure and the power elite His role is that of a technical legitimator since others upon whom he is dependent define his responsibilities and power (Mills 1944) Some research has shown that the scientists orientation is related to whether he subscribes to the values of the employing agency or to those of tbe professional comshymunity or which set of values he gives priority The general findings indicate that those who are professionally oriented and not extremely deshypendent on the local indUstry or university are more likely to create new knowledge have access to it and communicate new knowledge (Gouldner 1958) (Miller 1967) Those who are dependent on the local agency are less ikely to have the support of the professional community Therefore having

less power they are more likely to find themselves occupying the role of the legitimator Additionally legitimators would not be expected to experience alientation but would relate their technical expertise to the needs of the company or other employing organization rather than the profession

There are seeds of truth to both the perspectives Logically there are several role possibilit ies for industrial scientists (Wilensky 1967) It is possible for them to be innovators and idea-Initiators in one setting and legitimators in another The nature of their role depends upon how organizations use knowledge particularly the relptive emphasis placed upon whether research findings support certain values as opposed to judging research as to their relative validity (Etzioni 1972 137) Organizations as rational systems wIth specific goals are more concerned wi th the interpretative aspect of thei r knowledge whi ch according to Etzioni (1972 137) tends to be incompat ible with givi ng primary considerati on to

Economic goals therefore infl uence how corporate deshycision-nakers whether or not they have a scientific or engineering hack-ground view knowledge as well as the role of the scientist and scientific rcsearch

14

Knowledge is rapidly diffused and used in organizations and societies when it serves both the evaluative and reality-testing function For example the atomic energy commission in its interest to promote civilian and industrial use of nuclear energy has not had the same level of interest in the hazards of atomic wastes Also knowledge leading to elimination of harmful insects (pesticides) was received with considerable enthusiasm by government individual farmers and the public Food production could be increased and this coincided with relevant social goals However reshysearch efforts to determine whether they had undesirable side-effects was not part of our model of agricultural progress An adequate theory of knowledge and social organization needs to distinguish the eva1uativeshyinterpretative and reality testing function of knowledge The prominence of one or the other functions is related to the scientist and technical experts role

Because industrial professionals and scientists in particular have not been able to eBtablish a basis of power independent of corporate goals the evaluative interpretative function rather than reality-testing has been more characteristic of their role The role and scientific knowledge is valued as long as both fit the goals of production and profit maximizashyti on

The role-types are adapted from a study by Ramsey and McCarty (1971) in their study of variations in community power structures and the superinshytendency roles Theirs is one of the few empirical studies that attempt to investigate the decision-TIklking role of the man of knowledge at the comshymunity level dealing ith local problems across many different communities The study demonstrated that role differences among superintendents could be empirically determined and were related to the nature of the community power st ructure Roles include

1 entails taking a position and active invoivement with the political strategy of the group or orshy

ganization with how he is working lIis role is designed essenshytially to refute the position of scientists and engineers from the opposing group or groups

2 Legitimation meaning involvement in the process of sanctioning ideas or courses of action initiated or proposed by others The legitimator is asked to find evidence that supports the position taken by the company or agency in which he is employed There is the implicit suggestion if not the explicit order to ignore or refute opposing evidence

3 Technical within a more or less limited sphere research or implementation of policies

already defined as needed by the official order As a part of the role the individual makes decisions on research design and technical details with the possibility of review by colleagues The individual did not initiate the idea that the research was needed in the first place

15

4 entailing introduction of relatively new or consideration with or without the ability

to legitimate actively advocate or implement these ideas The total system may set aside part of its resources for the development of an innovative subsystem for the creation of new ideas or alternatives which then are considered by policyshymakers

5 Administrative decision-making a role that is part of the official decision-making hierarchy The role occupant has responsibilities related to the official goals and not just research and development As a part of his role however the occupant must be aware of the goals and needs of the company for maintaining its structure ie its investments of time and resources its power and economic growth

6 Professional consulting entails providing advice and informashytion for others in the system particularly influential pershysons and formal decision-makers without becoming identified with one particular alternative or course of action

The above roles functioning as presented will not create pressure for changes in corporate goals Traditional models of organizational development will not be challenged There may be substantial changes in how work is done the means or the introduction of new programs under the same rubric but not any changes in goals For example the ideas of the professional consultant may be used only to the extent that his conshytribution fits with established policies Seldom is the consultant called in before there is the recognition of an occasion for a decision He is usually contacted to analyze existing situations and identify alternative courses of action and their consequences Some questions that may be asked of the consultant I s role are Is the professi onal seen by polf cy-makers as assuming a preventive role Is he called in before there is a serious problem such as water pollution and asked to define the dimensions of the problem Or is he called upon only after serious pollution has already taken place Even if his ideas are entirely objective their potential imshypact on the industrys structure is not politically innocent (Bronson 1964)

The scientist in an administrative position is conceptually more powershyful than is the legitimator He is also very suhject to the role demands of his official position In such a position he has the power to innovate but must be concerned with the needs of the employing structure that tends to inhibit certain innovations In turn the scientist who is free from the constLaints fo formal decision-making does not have the power to innovate (Merton 1962) A central problem for the administrative scientist is the integration of the structure As a result the impact of innovation on the organizations structure must be considered Interestingly highly innovative organizations are likely to experience a great deal of internal conflict as a new idea or practice upsets either the economic or power inshyterests of subgroups All social systems attempt to integrate the functions of an innovative subsystem with its goals To the extent that such subsystems

16

have independent bases of power by means of expertise or tradition there will be conflict (Gouldner 1959) Since most of the research done by scientists in is for the development of knowledge for practical application innovation and advocacy has produced less conf1 ict than it potentially can

Some scientists suggest that the influence of the scientist will be enhanced only with a large-scale mobilization of scientists to change the goals of organizations employing them (Dupre and Lakoff 1962) It is more important from this view to establish social power through organizing rather than simply open lines of communication to policy-makers In the pluralistic community or society the socially and politically activist scientist has a greater opportunity to take advantage of a fluid political situation where he may form a group of his own to convince one or more competing power groups that his argument is vital to the well being of the community and society--and perhaps instrumental to the further strengthenshying of those groups themselves The industrial scientist can remove himshyself at some cost from the constraints of a particular structure and assume the role of a political advocate or strategist As he does so there is the prohlem that he is open to political attack and his scientific ideas will be suhjected to political as well as logical analysis One may gain in

and power by means of political action but lose in scientific cred-An idea-initiator whose ideas are ignored is most likely to beshy

come a political activist Idea-initiation roles will be associated with lower values on professional autonomy and higher values on social activism among scientists On the other hand technical decision-making roles will be associated with orientation toward the professional system for evaluation and rewards This group probably including most scientists in industrial organizations are unlikely to challenge the official goals of industry economic growth because their autonomy and power is related to the success of those goals and the viability of the core technology

The contribLlttion of scientists to the development of the modern inshydustrial system has been critical At the same time the innovations that have appeared and the sophisticated knowledge required to maintain our techshynology has been channeled rather dramatically by the needs of the indusshytrial system--economic growth autonomy This is not altogether surpriSing as the structure of science reflects the dominant of the society of which it is a part Indeed some power has passed to the professional scientist and engineer in the modern corporation However the power position of the scientist is dependent upon the autonomy and growth of the mature corporashytion Innovations and knowledge that insure the economic growth of the firm and stability of the core technology is in the best interests of modshyern science and professionals Corporate scientists are therefore strongshyly tied to the cultural goals of the industrial and all science system

Note

All social units seek to predict and control their environment If there is a universal element among complex social units it is that they seek to influence environmental responses in order to reduce external uncertainty and minimize internal change An organization is increasshyingly capable of controlling external factors as it grows in power as

17

it comes to control basic resources upon which a public or society is deshypendent These resources can be hard goods medical care education or in general knowledge Because formal organizations have specific goals they tend to canalize environmental influences making for an increasing sel~ctivity of response Hence a dilemma develops at the societal level

If a system is so structured that knowledge production is tied to a single set of goals then the ability of the system to deal with problems not congruent with those goals is very low The power of corporations to control knowledge means that a high level of societal disequilibrium is the inevitable result If social systems are to adapt to change or regulshyate its occurrence they must contain at least as much internal variety as there is in the environment (ampshby 1962 255-256) When societi es are dominated by one or two major institutions knowledge relevant to their culshytural goals will be more prominently supported than knowledge related to other needs Furthermore large organizations like industrial corporations with their interest concentrated on economic goals have the capacity to influence their environments to regulate change so it coincides with their interests

Rather than adjusting to changing conditions they can often exert power so that objective conditions are not defined as social problems Control over knowledge production is an important aspect of power If we define power as the ability of one party to limlt the behavioral altershynatives of another knowledge is a crucial element of this process By focusing research and development on problems of production and consumpshytion rather than control of pollution industries could in turn attest to the fact that (1) the knowledge to reduce their pollution was not available even though they wanted to control their pollution or that (2) the adoption of eXisting technology would require massive economic loss in profit and jobs To the extent that industrial corporations control the distribution of such knowledge public alternatives for response are few Public groups with fewer resources have to recruit professionals on their own to propose alternatives

If our argument is correct that industrial corporations are basic seats of learning and change in advanced societies given their abi lity to produce knowledge and exercise power then an industrial socIety cannot readily react to problems out si de of the corporate framework Pollution abatement is such a problem The social integration of the corporate inshydustrial system and science has meant that the society as a whole has been unable to anticipate or respond effectively Development as opposed to growth requires the presentation and discussion of alternatives Alshyternatives presented depend upon what knowledge exists that which is communicated and that which is defined as important Croups who control knowledge therefore control the perception and realization of alternashytives for development Alternatives available profoundly limit group and societal response and is a basic evidence of power Who defines the alshyternatives has power

18

Industrial corporations are a basic element of change in modern inshydustrial societies whose actions have ramification for the whole society As the size and power of these organizations have increased according to Williams (1970 541) the consequences of their decisions increasingly outrun the limits of the unit in which they originate Because industrial production for private gain has resulted in the massive uses of common property (air water land and space) the public has experienced negative affects over and above the advantages of consumer goods Industrial lution is now a major social issue with a strong institutional base rison Hornbeck and Warner 1971) People who were influential in major institutional areas such as education and government have been an integral part of the environmental movement Furthermore a complex of powerful agencies at all levels of government are now active in the regulation of industrial use of the natural environment Industrial corporations simshyultaneously face a deteriorating natural environment eg water which is an important input to production and an lncreasingly hostile social mi1eau where powerful groups are demanding extensive changes in the indusshytrial use of water These involve the decision-making autonomy of indivishydual firms if not the autonomy and power of the private sector

Establishment of standards for industrial waste control inevitably requires some revIsion of core production technologies Consequently changes that are being called for are major rather than minor It is nothing less than the internal allocation of resources and standards of production and not jWit the removal of heavy metals like mercury or solids from industrial waste that is at issue Changes being called for constitute what Dunn (l971) considers as paradigm shifts Paradigm shifts according to Dunn (1971) are changes that require a modification of goals and an extension of the systems boundaries The system has to become more comshyplex by the inclusion of more goals or by reducing the priority of one goal relative to another

Knowledge and social structures consonant with one set of goals are often contradictory to the accomplishment of others eg pollution control as opposed to profit and production The social system surrounding indusshytrial production is a case in pOint The integration of industrial prodshyuction needs and sdenfitic knowledge within the context of the industrial corporation has made it considerably difficult for the society to respond to problems that are outside of the inertia of the industrial system Beshycause of the dominance of industrial corporations and their control of science the society experiences a high rate of discontinuous change which leads to policy making in the context of crisis A model of social developshyment we would like to employ would be one that leads to a gradual accumushylation of knowledge related not only to production but to waste control as well It is not that scientists engineers and other professionals did not recognize the seriousness of environmental problems before the last few years but that neither government agencies nor great industrla1 corporashytions were willing to allocate resources to study these problems There are now crash programs of research and planning to deal with industrial and community waste control with very limited knowledge of what to do and what the consequences of existing teChniques will be not only for waste control itself but the social and political impact of emerging policy

19

Industrial organizations are both powerful and innovative Because of their innovative capacity they employ most of the scientists and engineers in the United States As a result they directly influence knowledge producshytion and distribution Professionals work in a context where knowledge conshysonant with corporate goals is valued and rewarded whereas other kinds of research is not Knowledge to meet problems like pollution that in the short run are counter to corporate goals will be available only with the revision of those goals and the acceptance of a model of societal development that includes environmental quality along with growth in production As a result the question of pollution control is outside the hands of the scienshytific and engineering communities and finds its basis in the conflict of corshyporations and other powerful groups public and private

20

REFERENCES

Aiken M and J Hage 1965 Organizational alienation a comparative analysis American

Sociological Review 31 (August) 497-507

Ashby W Ross 1962 Principles of the self-organizing system Pages 250-265 in

Principles of Organization H Von Foerster and GW 7opf (eds) New York Pergamon Press Inc

Blau Peter M 1968 The of authority in organizations American Journal

of Sociology (January) 453-467

Bower Blair T 1965 The economics of industrial water utilization Pg 143-173

in AV Kneese and SC Smith (eds) Water Research Baltimore The Johns Hopkins University Press

Bronson Lyman 1952 Notes on a theory of advice Pp 203-216 in Robert K Merton

et al Reader in Bureaucracy New York The Free Press

Burns T and G M Stalker 1961 The Management of Innovation London Tavistock

Coleman James S 1973 Loss of Power American Sociological Review 33 (February)

1-18

Cordtz Dan 1971 Bringing the laboratory down to earth Fortune 83 (January)

106-110

Crozier Michel 1964 The Bureaucratic Phenomenon Chicago The University of

Chicago Press

Demaree Allan T 1972 RCA after the bath Fortune 86 (September) 122-140

Denison Edward 1962 The Sources of Economic Growth in the United States and the

Alternatives Before Us New York Committee for Economic Development

Donohue GA PJ Tichenor and CN Olien 1972 Gatekeeping mass media systems and information control

Pp 110-125 in FG Kline and PJ Tichenor Perspectives in Mass Communication Beverly Hills CA Sage Publications

21

Dunn Edgar S Jr 1971 Economic and Social Development Baltimore The Johns Hopkins

Press

Dupre Joseph S and SA Lakoff 1962 Science and the Nation Policy and Politics Englewood Cliffs

NJ Prentice-lla11

Etzioni Amatai 1972 The Active Society New York The Free Press

Galbraith John K 1967 The New Industrial State Boston Houghton-Mifflin Company

Gouldner Alvin 1958 Cosmopolitans and locals toward an analysis of latent social

roles -- 1 IT Administrative Science Quarterly 2 281shy306 444-480

Gouldner Alvin 1959 Reciprocity and autonomy in functional theory Pp 241-271 in

L Gross (ed) Symposium On Sociological theory New York Harper and Row

Hage J and M Aiken 1970 Social Change in Comp1ex Organizations New York Random

House Inc

Hall Richard H 1967 Some organizational considerations in the professional

organizational relationshipAdministrative Science Quarterly 12 (December) 461-479

Kornhauser William 1962 Scientists in Tndustry Conflict and Accommodation Berkeley

University of California Press

Lawrence PR and JW Lorsch 1967 Organizations and Environment Boston Division of Research

Graduate School of Business Administration Harvard University

Layton Edwin 1969 Science business and the American engineer Pp 51-73 in

Robert Perrucci and Toel E Gerst 1 (eds) The Engineers and The Social System New York John Wiley amp Sons Inc

Mansfield Edwin 1968 The Economics of Technological Change New York W W Norton

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Merton Robert 1962 Social Theory and Social Structure New York The Free Press

22

Miller George A 1967 Professionals in bureaucracy alienation among industrial

scientists and engineers American Sociologic~l Review 32 (October) 755-768

Mills C Wright 1944 ~he powerless people the social role of the intellectual

Politics l(Winter) 232-240

Morrison Denton WID Hombeck and Keith Warner 1971 The Environmental Movement Some Preliminary Observations and

Predictions Pp 259-279 in William R Burch etal (eds) Social Behavior Natural Resources and the Environment New York Harper and Row

Price James 1964 Use of new know1edge in organizations Human Organizations

Human Organization 23 (Fall) 222-234

Ramsey Charles E and DJ McCarty 1971 The School Managers Community Power and School Policy

Westport Conn Greenwood Press

Solow Robert M 1957 Technical change and the production function Review

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Thompson James D 1967 Organizations in Action New York The McGraw-Hill Book Complt11Y

Weber Max 1946 From Max Weber Essays in Sociology Pp 159-262 in Hans

Gerth and C fright Mills (eds) New York Oxford University Press

WUliams Robin 1970 American Society New York Alfred A Knopf

23

CONTENTS

Foreword bull bull bull bull Acknowledgments Introduction bull bull The Social Organization of Production

Problem Orientation bull bull bull bull bull bull bull Science and Industrial Technology bull Science at the Corporate Level Innovativeness The Control Hypothesis

The Expert Role Models of Control A Final Note

References bull bull bull bull bull bull bull

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if iii

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researuh and development in industrial corporations: can

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